TOTAL QUALITY MANAGEMENT

INTRODUCTION

Your Text Book

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What does the word “quality” mean to you?
• Think about your past experiences
staying at various hotels. Did you stay
at a “quality” hotel?
What about the
experience made it a “quality”
experience for you?

• Think about a product you bought. How can you define its “quality”?

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What is Quality?
– Merriam Webster’s Collegiate Dictionary, 10th Edition(1994)
defines quality as
“an inherent feature;
degree of excellence; and
superiority in kind
(Sad)

▪ Some definitions that have gained wide acceptance in the corporate

world:

▪ “Meeting or exceeding customer expectations”

▪ Juran, one of the quality gurus,

defined quality as;
▪ Fitness for Use

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Definitions of Quality………..continued
Quality means different to different people:
1. Customer-Based:
Fitness for use,
meeting customer expectations.
2. Manufacturing-Based:
Conforming to
design, specifications, or requirements.
Having no defects.

3. Product-Based:
The product has something
that other similar products do not
that adds value.

4. Value-Based:
The product is
the best combination of
price and features.

5. Tran_s_cen_dent:
excellence.

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PF CADS RRR
Performance Primary product characteristics
Features Secondary characteristics

Conformance Meeting specifications or industry standards

Aesthetics Sensory characteristics
Durability Useful life
Service Resolution of problems and complaints

Reliability Consistency of performance over time

Response Human-to-human interface
Reputation Past performance and other intangibles

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SERVQUAL
• SERV_QUAL is short for Service Quality.
In 1982, the concept of service quality was put forward by Professor Gron_roos.

He believes that service quality include

two parts,
which are
technical quality and functional quality.

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Service Quality
How many dimensions?

• Tangibles
• Convenience
• Reliability
• Responsiveness
• Time
• Assurance
• Courtesy

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Examples of Service Quality
Dimension Examples
1. Tangibles: Were the facilities clean, personnel neat?
2. Convenience: Was the service center conveniently located?

3. Reliability: Was the problem fixed?

4. Responsiveness: Were customer service personnel willing and able to answer questions?

5. Time: How long did the customer wait?

6. Assurance Did the customer service personnel seem knowledgeable about the repair?
7. Courtesy: Were customer service personnel and the cashier
friendly and courteous/ polite?

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Total Quality Management

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TQM Six Basic Concepts
Top,Quality, Focus,

1. Top Management commitment to

TQM principles and methods &
long term Quality plans for the Organization
2. Focus on customers – internal & external
3. Quality at all levels of the workforce

Continuous partners Establish

4. Continuous improvement of the production/business process

5. Treating suppliers as partners
6. Establish performance measures for the processes.

[ 1. Top Management commitment to

TQM principles and methods &
long term Quality plans for the Organization
1. Management must participate in the quality program. A quality council must be established to
develop a clear vision, set long-term goals, and direct the program.
TQM is a continual activity that must be entrenched in the culture—it is not just a one-shot
program. TQM must be communicated to all people.

2. Focus on customers – internal & external

We must listen to the “voice of the customer” and emphasize design quality and defect
prevention

3. Quality at all levels of the workforce

3. TQM is an organization-wide challenge that is everyone’s responsibility. All personnel must
be trained in TQM, statistical process control (SPC), and other appropriate quality improvement
skills so they can effectively participate on project teams.

4. Continuous improvement of the production/business process

4. There must be a continual striving to improve all business and production processes.
Quality improvement projects, such as on-time delivery,
Technical techniques such as SPC, benchmarking,

5. Treating suppliers as partners

A Partner relationship rather than an opposing one must be developed. Both parties have as
much to gain or lose based on the success or failure of the product or service.

The focus should be on quality and life-cycle costs rather than price. Suppliers should be few in
number so that true partnering can occur.

6. Establish performance measures for the processes.

6. Performance measures such as
uptime, percent nonconforming, absenteeism, and customer satisfaction
should be determined for each functional area.

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Obstacles to TQM Implementation
➢ Lack of management commitment
➢ Inability to change organizational culture
➢ Improper planning

➢ Lack of continuous training and education

➢ Incompatible organizational structure and
isolated individuals and departments
➢ Ineffective measurement techniques and lack of
access to data and results

➢ Paying inadequate attention to internal and

external customers
➢ Inadequate use of empowerment and teamwork
➢ Failure to continually improve